Limited Company Incorporation service by Tax50 with extra benefits

What is a Private Limited Company?

Firstly, a Private Limited Company (Ltd) exists as an independent legal entity separate from its officers. As such, this status ensures the company maintains its own assets, liabilities, profits, and losses. Secondly, Because liability rests entirely with the corporate entity, this structure protects officers from personal financial risk if the business runs into difficulties. Thirdly, this setup directly contrasts with a sole trader or partnership, where the business owners remain personally liable for all debts. In conclusion this structure provides less exposure to HMRC and to personal financial risk.

Also, Ownership of a private Limited Company is established through the division of shares. However, unlike a Public Limited Company (PLC), a private Limited Company is restricted from selling shares to the public. Lastly, Limited Companies must also submit annual accounts to Companies House which are made available to the general public.

Is there more than one type of Limited Company?

In summary, yes. There are four main types of company:

Private company limited by shares- this type of company has a share capital and the liability of each member is limited to the amount unpaid on shares that a member holds. As such, a private company cannot offer its shares for sale to the general public. Hence, Tax50 will help you set up or Incorporate this type of Limited Company.

Private company limited by guarantee- in this type of company, members do not make any contribution to the capital during its lifetime as they do not purchase shares. Because of this, the members' liability is limited to the amount that they each agree to contribute to the company's assets if it is wound up. Also, Tax50 can help you set up this type of company. Though there are also still a few "companies limited by guarantee with a share capital" it has not been possible to form these since 1981.

Private unlimited company- this type of company may or may not have a share capital and there is no limit to the members' liability. Because of this, there is no limitation on members’ liability, the company has to disclose less information than other types of company.

Public limited company- this type of company has a share capital and, the liability of each member is limited to the amount unpaid on shares that a member holds. In conclusion, a public limited company may offer its shares for sale to the general public and may also be quoted on the stock exchange.

What are the advantages of trading as a Limited Company?

Firstly, Limited liability offers the most attractive benefit of trading as a limited company, protecting your personal assets if the business runs into financial difficulties. Also, today running a limited company requires roughly the same administrative overhead and cost as operating as a sole trader or partnership.

Additionally, corporate status instils instant confidence in suppliers and creditors; many large organisations will exclusively conduct business with limited companies. Finally, you can also easily divide company ownership by selling shares, allowing you to raise capital efficiently or further reduce your overall tax liability.

Who can set up a Limited Company?

Ultimately, any individual of any nationality can register a limited company subject to a few conditions:

As long as, they are not an un-discharged bankrupt.
Also, they have not been restrained by court order.
Furthermore, they are not subject to UK government restrictions.

Can anyone be a Company Director?

In summary, The Companies Act 2006 requires every company to appoint at least one individual ("natural person") as a director. As such, Companies cannot rely entirely on "corporate directors" to fill these roles. Additionally, since 1 October 2008, anyone appointed as a director must be at least 16 years old.

What is the difference between Shareholders and Directors?

Firstly, Directors run the company day-to-day and ensure it meets all responsibilities and deadlines. In contrast, shareholders own the company and vote on major business decisions. Therfore, Their percentage of issued shares determines their total ownership and voting power. Finally, one individual can hold both roles simultaneously.

Do I need a company secretary?

To elaborate, since 6 April 2008, private companies no longer require a company secretary. As such, the law makes this role entirely optional rather than mandatory.

What information do I need to set up a Limited Company?

Firstly, to set up a limited company you will need the following information:

A unique name for your Company.

Have a Registered Office address (our Wigan office is recommended).

Have at least one Shareholder willing to buy a single £1 share in the company. They can also be a director or secretary.

Provide key information for each director, secretary and shareholder: town of birth, eye colour and Mothers maiden name etc.

Furthermore, you must explicitly identify anyone holding more than 25% of the shares or 25% of the total voting rights. As such, you must provide their full name, date of birth, nationality, and service address for the public register.

I don't live in England. Can I still set up a new company?

To clarify, Company Officers can live anywhere outside the UK. However, the company must maintain a physical Registered Office Address within England, Wales, Scotland, or Northern Ireland.

Does registration of my company name also mean that my trademark is protected?

Ultimately, company law is different from trademark law. Hence you cannot stop someone using a trademark which is the same or similar to yours merely by registering your name with Companies House.

But, for further advice on trademark registrationyou can contact the UK Intellectual Property Office (IPO) on 0300 300 2000 or visit the website at the Intellectual Property Office.

To clarify, no. Registering a company name does not mean that name is trademark protected.

What are the Memorandum & Articles of Association?

Firstly, these statutory legal documents define how your company operates and outline the protocols it must follow in its day-to-day business. Ultimately, since October 2009, limited companies can adopt the statutory Model Articles of Association. By consultatoion, the government introduced these Model Articles under the final implementation of the Companies Act 2006.

This modern framework enables directors to coordinate meetings, issue shares, and pass resolutions efficiently. Drafted in plain English, these documents adopt a "Think small first" approach to corporate management. However, Tax50 offers tailored solutions to help you customise these articles or import your own bespoke templates. Finally, Please contact us today to discuss your company's requirements.

What are shares and how do they affect a Limited Company?

Firstly, Shares will inject capital into your company and determine how much voting power shareholders hold over operations. Secondly, to maintain full control of the company, you must own over 50% of the shares.

Thirdly, Because share distribution directly impacts corporate control, the law requires all companies to submit a Statement of Capital upon incorporation. Ultimately, this statement details the nominal value of the shares, the currency used, the total value of issued capital, and all paid-up amounts. As a result, the percentage of issued shares a person owns determines their exact financial and legal interest in the company.

What are share certificates and what details must they include?

In summary, Share certificates are receipts issued to shareholders for each share purchase made. To elaborate, you must include the following details on your share certificates:

The name of the company.

The type of share(s) you are issuing.

The name and address of the shareholder(s).

The number of shares (in words) that are to be assigned to the shareholder.

The value of the share(s).

A signature from a director and secretary (where appointed) of the company.

What kind of accounts and records must a Limited Company maintain?

To start with, by law, all companies must maintain complete records of their income, expenditure, assets, and liabilities. In addition, you must securely store these financial records, as they form the foundation of your company's annual accounts. In conclusion, to simplify this process, Tax50 guides you through your legal obligations and provides ready-to-use record-keeping templates.

Do I need to return any documents annually?

In summary, yes you must provide a number of documents following your 'Accounting Reference Date' (ARD). To clarify, this date is usually the last day of the month your company was incorporated and occurs each year; it is the date that your financial year ends where the accounts are to be made up to. You will have 10 months from your ARD to return the following documentation to Companies House:

A profit and loss account (or income and expenditure account if the company is not trading for profit).

A balance sheet signed by a director.

An auditors report signed by the auditor (if appropriate).

A directors’ report signed by a director or the secretary of the company.

Notes to the accounts.

Group accounts (When necessary).

Where eligible, medium-sized, small, very small and dormant companies may prepare and file 'abbreviated accounts'. Small companies (with a turnover of less than £5.6 million [£250,000 for companies that are charities] and assets of less than £2.8 million) can also claim exemption from audit.

What is the Companies Act?

The Companies Acts establish the legal framework for all limited companies. Parliament introduced the Companies Act 2006 to modernise company law. The government implemented these legislative updates in phases, completing the entire modernisation process by October 2009.

Tax50 LIMITED COMPANY INCORPORATION CHARGE IS £250.00 (this is an executive service and this is the only service that we recommend).

What is included in the Executive Service?

This comprehensive, cost-effective package includes everything you need:

Companies House Incorporation fee.
Printed Certificate of Incorporation.
Digital copy of Certificate of Incorporation.
Bound copy of the Memorandum & Articles of Association.
Digital copy of Memorandum & Articles of Association.
Digital Share Certificate for each shareholder.
Official Tax50 multifunction pen.
Using the Tax50 Wigan office as the Company Registered Office Address.
Using the Tax50 Wigan office as the Directors Correspondence Address.

If you would like to know more about Limited Company Incorporation and about how it would affect your business activities on a day to day basis then Tax50 has an expert ready to advise you. Tax50 will provide you with the right Accounting Solution to suit your business. Tax50 also endeavors to make sure that you benefit from the Limited Company structure by:

Adopting a Tax efficient Structure as part of the Company

Helping you take advantage of Corporation Tax

Tax efficient & legally compliant profit extraction strategies

Saving money by paying less Corporation Tax

Helping you avoid late filing penalties

Advising you on how to take advantage of company allowances

Tax50 will provide you with practical advice to help you manage your business and trading affairs as efficiently as possible. Finally, We tailor this guidance directly to your specific trading goals and lifestyle requirements. Ultimately, our expert advice ensures you smoothly integrate the management of a limited company into your daily life.

Why Tax50?

Tax50 will also prepare and file your Company Accounts with Companies House, ensuring on-time submission and compliance with statutory obligations. Also, we prepare accounts with industry-standard accounting conventions and include a documented delivery timeline. Helping you avoid costly late filing penalties and to fulfil your company statutory obligations. We know you want honest, straight forward and experienced advice and want help making sure you avoid costly late filing penalties. Tax50 is the perfect accountant with the right experience to help you.

Also, Tax50 provides elite practical advice to help you manage your taxation affairs as efficiently as possible. Consequently, we tailor all our guidance directly to your specific business and lifestyle requirements. Furthermore, our accountants help you seamlessly integrate tax management into your working life while ensuring your company meets its statutory obligations to HMRC. This proactive management helps you avoid costly late-filing penalties.

Moving Forward

Regardless of your company's size or industry sector, Tax50 delivers the right accounting solution for you. We will always help you understand your business tax burden, allowing you to focus entirely on your company's core goals and principles. Our expert team successfully supports hundreds of businesses by absorbing the full burden of their mandatory filing obligations.

Because every business needs excellent counsel, Tax50 provides relevant, practical advice tailored directly to your specific business and lifestyle requirements. As such, whether you are a new start-up or an established enterprise with years of operation, we help you increase your income and reduce your expenditure. In conclusion, Tax50 offers the ideal accounting partner to accelerate your business growth and deliver the ultimate strategic advantage.

Payroll Services and Solutions

Tax50 also delivers a fully featured payroll solution that includes professional wage slips and P11D forms. We always eliminate administrative hassle, making payroll processing easy and efficient for your business. Our expert team provides custom wage slips and comprehensive contracts of employment tailored to your operational needs.

Furthermore, our accountants provide expert advice to actively reduce your overall exposure to HMRC. We secure your compliance across all operations by delivering a payroll system that remains fully Real Time Information (RTI) compliant. If your business needs to produce accurate, stress-free wage slips, Tax50 offers the ideal accounting partnership.

Accountants vary significantly in their expertise, approach, and the quality of support they provide. If you need help with HM Revenue and Customs (HMRC), Tax50 delivers the premier strategic advice you require.

Bookkeeping

Tax50 also leverages extensive experience across diverse industry sectors to deliver precise, tailored bookkeeping for your business. Implementing the correct bookkeeping structure allows you to maximize the detailed financial and management data necessary for budgeting and finance forecasting. Because bookkeeping remains an essential pillar of every business, Tax50 manages your records seamlessly to keep your company financially organized.